The H20 model processor, the most powerful of the three China-focused chips, initially scheduled to launch in November 2023, is now expected to enter full-scale production in the second quarter of 2024.
The announcement of Nvidia on mass production of new artificial intelligence chip (AI), specifically designed for China, has unleashed a series of significant repercussions both in the technology industry as in financial markets. On the local stock market, particularly, the company’s Argentine depositary certificate (cedear) climbed more than 10%.
After the announcement, The technology company’s stock reaches a historical high of US$512.78 by climbing more than 4.5% in this Monday’s session, boosting the Nasdaq, which stands out from the other Wall Street indices by climbing 1.5%. The Dow Jones, for its part, lost 0.1% and the S&P 500 climbed 0.7%.
The H20 model processor, the most powerful of the three China-focused chips, initially scheduled to launch in November 2023is now expected to enter full-scale production in the second quarter of 2024. However, sources close to Nvidia have revealed that the initial production volume will be limited due to the prioritization of fulfilling larger customer orders.
This strategy of adaptation to the Chinese market poses a challenge for Nvidia, since the new chips, although specifically aimed at China, could lack the necessary attractiveness for companies in the country. There has been a movement towards domestic alternatives, such as those proposed by Huawei Technologies, posing a dilemma for the American technology company.
Nvidia and Wall Street indices
The restrictions imposed by the United States government, according to Gina Raimondo, secretary of the Department of Commerce, seek to limit China’s access to advanced semiconductors that could drive advances in artificial intelligence and sophisticated computers, especially in Chinese military applications.
Against this backdrop, Jensen Huang, CEO of Nvidia, stated at a press conference in Singapore that the company is working closely with the US government to develop products that comply with current regulations. Besideshas expressed the intention to work on creating a new set of products that fit the new restrictionsmaintaining close collaboration with government authorities.
The H20, L20 and L2 chips, although they will incorporate most of Nvidia’s latest features for AI workthey will be limited in their computing power to comply with the new established rules.
Companies such as Apple, Amazon.com and Alphabet have seen gains in their stocks, with announcements and developments generating interest in the market.
In particularApple has gained 0.9% after announcing the availability of its Vision Pro augmented reality device starting February 2 in the United Stateswhile Amazon.com and Alphabet have experienced increases of 1.1% and 0.5%, respectively, in the value of their shares.
Source: Ambito
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